Fitch rates MGM Resorts notes BB

Fitch Ratings said it assigned a BB rating with recovery rating of RR3 rating to MGM Resorts International's announced $500 million senior unsecured notes due in 2027.

MGM's issuer default rating is currently BB with a stable outlook.

The proceeds will be used to fund the purchase of up to $500 million of the $1.5 billion outstanding notes due 2020 and for general corporate purposes, which could include shareholder returns, Fitch said.

The agency said expects MGM to de-lever to less than 5x year-end 2020.

The company improved its overall geographic diversification and expanded its M Life Rewards program, Fitch said.

The regional portfolio's diversification partially offsets the more cyclical nature of Las Vegas Strip properties, the agency said.

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